What is INCO Terms in International Trade ★ EXW,FAS, FCA,FOB,CFR,CPT,CIF,CIP,DAT,DAP,DDP

Описание: What is INCO Terms in international Trade, EXW,FAS, FCA,FOB,CFR,CPT,CIF,CIP,DAT,DAP,DDP

International Commercial (INCO) Terms used in International Trade

What is the meaning of Incoterms,What is Incoterms in export,What is Incoterms in logistics,What is the purpose of Inco,What are INCO Terms, what's incoterms ,What is EXW#What is FAS,What is FCA,What is FOB, What is CFR, What is CPT, What is CIF, What is CIP,What is DAT, What is DAP,What is DDP.

The Incoterms are a set of commercial/trade rules established by the International Chamber of Commerce (“ICC”) that are used in international sale contracts. [1] The Incoterms are not mandatory rules – for them to receive legal effect, they must be explicitly incorporated by the parties into their contract.

★★The Incoterms are divided into four principal categories: E, F, C and D.

Category E (Departure), which contains only one trade term, i.e. EXW (Ex Works).

Category F (Main Carriage Unpaid), which contains three trade terms:

FCA (Free Carrier)
FAS (Free Alongside Ship)
FOB (Free on Board)
Category C (Main Carriage Paid), which contains four trade terms:

CPT (Carriage paid to)
CIP (Carriage and Insurance paid to)
CFR (Cost and Freight)
CIF (Cost, Insurance and Freight)
Category D (Arrival), which contains three trade terms:

DAP (Delivered at Place)
DPU (Delivered at Place Unloaded)
DDP (Delivered Duty Paid)
The four above-mentioned categories can also be classified as per the means of transportation:

★Incoterms for any mode of transport: EXW, FCA, CPT, CIP, DPU, DAP and DDP;

★Incoterms only for sea and inland waterway transport: FAS, FOB, CFR and CIF.

The shipment of an export item from the seller's warehouse to the buyer involves various steps including packing, loading, domestic inland transport, terminal port's charges, loading on to the ship/flight, Insurance & Freight charges, arrival charges, Duties and taxes and finally the delivery to the buyer. While the buyer would definitely pay for the export item, there might be confusion about who would pay for the additional costs? This is determined by the International Commercial (INCO) terms which the buyer and seller agree to. These INCO terms are discussed in this video.

This video is developed by the Office of the Additional Director General of Foreign Trade, Bengaluru as part of an initiative under the Niryat Bandhu Scheme of Government of India.

Disclaimer: This video is for information and educational purposes only. For more details contact you may contact a DGFT office